View full sizeDave Dahl of Dave's Killer Bread is taking on a business partner and expanding. Beth Nakamura/The Oregonian

Dave's Killer Bread was killing the market, no question. The Dahl family's Milwaukie company, home-grown as NatureBake, was growing 40 to 100 percent per year, with sales pushing past $50 million in 2012. In a seven-year span, the company went from 35 employees to about 280. They reached a point where they operated three bakeries, had manufacturing partnerships with two others and sold 400,000 loaves a week in 11 Western states.

Dave, Shobi and Glenn Dahl felt like the company was rising out from under them, like dough with super-charged yeast.

Dave Dahl said the company has reached a point where it can't transport bread farther without sacrificing quality.

Rather than build new bakeries, the company will look to grow through co-manufacturing agreements, in which existing bakeries produce bread to Dave's Killer Bread specifications. The company will first look to expand sales in California grocery outlets.